--- title: "Bhutan tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/bhutan/tax/ lang: en updated: 2026-10-12 --- # Bhutan tax Tax residence: At least 183 days in Year preceding the year of assessment. Special regime for new residents: 0% tax on chargeable income of non-Bhutanese individuals. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - At least 183 days in Year preceding the year of assessment · Physically present or exercising employment in GMC (other than as company director) counts as resident in GMC. - An individual is resident in Bhutan for an income year if domiciled in Bhutan, unless the individual has a permanent home outside Bhutan for the whole year and none in Bhutan, or if present in Bhutan for 183 days or more in any 12-month period that begins or ends in the income year. ## Special regimes for new residents Special regime ### Gelephu Mindfulness City: 0% tax on chargeable income of non-Bhutanese individuals 0% tax **Details** In the Gelephu Mindfulness City, non-Bhutanese individuals, whether resident in the GMC or not, are taxed at 0% on chargeable income derived on or before 31 December 2030; companies pay 15%. (sources 1, 2, 3) #### Taxed on Chargeable income accruing in or derived from GMC or received in GMC from outside GMC, under the GMC Income Tax Act 2025. #### Who it applies to - Individual who is not a citizen of Bhutan, resident in GMC or not. - Section 43(1)(ba) of the Income Tax Act 2025 sets the 0% rate for non-citizens of Bhutan, resident in GMC or not, on chargeable income derived on or before 31 December 2030. #### Exclusions - Companies and bodies of persons: 15% of chargeable income. - Income derived after 31 December 2030 is outside the stated 0% rate. - Citizens of Bhutan who are resident in Gelephu Mindfulness City are taxed at the rates in Part A of the Second Schedule, not at 0%. #### Days in the country - At least 183 days in Year preceding the year of assessment · Physically present or exercising employment in GMC (other than as company director) counts as resident in GMC. #### Tax residence Resident in GMC includes a person physically present or exercising employment (not as company director) in GMC for 183 days or more in the year preceding the year of assessment. #### Visas Applies in the GMC special administrative region only; the GMC work pass framework is separate. #### Other taxes Companies and bodies of persons pay 15% of chargeable income. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Which visas the regimes apply to - **0% tax on chargeable income of non-Bhutanese individuals**: GMC work pass. Applies in the GMC special administrative region only; the GMC work pass framework is separate. ## Standard rules and foreign-source income Standard rules ### Bhutan personal income tax from income year 2026 (Income Tax Act of Bhutan 2025) **Details** - Who: Scale from income year 2026: up to Nu. 300,000 nil - Limit: BTN 300k/yr ≈ $3,130 From income year 2026, an individual's taxable income in Bhutan is taxed at nil up to Nu. 300,000 a year, then at 5%, 10%, 15%, 20% and 25%, and at 30% above Nu. 3,500,000. Employers withhold monthly under the Annexure I table and withhold nothing on a monthly salary up to Nu. 25,000. (sources 4, 5, 6) #### Taxed on Taxable income of an individual for the income year under the Income Tax Act of Bhutan 2025, including business income of sole proprietors and partners. A resident individual deducts 15% of total employment income or Nu. 150,000, whichever is lower. #### Who it applies to - Scale from income year 2026: up to Nu. 300,000 nil; Nu. 300,001 to 500,000 at 5%; Nu. 500,001 to 750,000 at 10%; Nu. 750,001 to 1,200,000 at 15%; Nu. 1,200,001 to 2,000,000 at 20%; Nu. 2,000,001 to 3,500,000 at 25%; above Nu. 3,500,000 at 30%. - Employers withhold from monthly salary above Nu. 25,000 under the Annexure I table of the Rules on the Income Tax Act 2025. #### Limits - BTN 300,000 a year (≈ $3,130) · Nil band: taxable income up to Nu. 300,000 a year (monthly salary up to Nu. 25,000 carries no withholding) - BTN 500,000 a year (≈ $5,210) · 5% from Nu. 300,001 to 500,000 - BTN 750,000 a year (≈ $7,820) · 10% from Nu. 500,001 to 750,000 - BTN 1,200,000 a year (≈ $12,500) · 15% from Nu. 750,001 to 1,200,000 - BTN 2,000,000 a year (≈ $20,900) · 20% from Nu. 1,200,001 to 2,000,000 - BTN 3,500,000 a year (≈ $36,500) · 25% from Nu. 2,000,001 to 3,500,000; 30% above Nu. 3,500,000 #### Days in the country - At least 183 days in any 12-month period that begins or ends in the income year · Presence test for residence under the Income Tax Act of Bhutan 2025; domicile in Bhutan also makes an individual resident. #### Tax residence An individual is resident in Bhutan for an income year if domiciled in Bhutan, unless the individual has a permanent home outside Bhutan for the whole year and none in Bhutan, or if present in Bhutan for 183 days or more in any 12-month period that begins or ends in the income year. #### Visas Not linked to a visa category. #### Other taxes Dividends and interest paid to an individual carry 10% withholding. Dividends up to Nu. 300,000 and fixed-deposit interest up to Nu. 400,000 received in an income year by an individual who is not a business are exempt. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and other taxes - Companies and bodies of persons pay 15% of chargeable income. - Dividends and interest paid to an individual carry 10% withholding. Dividends up to Nu. 300,000 and fixed-deposit interest up to Nu. 400,000 received in an income year by an individual who is not a business are exempt. ## Questions people ask ### When do you become a tax resident in Bhutan? At least 183 days in Year preceding the year of assessment (Physically present or exercising employment in GMC (other than as company director) counts as resident in GMC). An individual is resident in Bhutan for an income year if domiciled in Bhutan, unless the individual has a permanent home outside Bhutan for the whole year and none in Bhutan, or if present in Bhutan for 183 days or more in any 12-month period that begins or ends in the income year. ### Who qualifies for 0% tax on chargeable income of non-Bhutanese individuals? Individual who is not a citizen of Bhutan, resident in GMC or not. Applies in the GMC special administrative region only; the GMC work pass framework is separate. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (6)** ## Official sources 1. [Income Tax Act 2025 (GMC Law No. 6 of 2025)](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/pqz64hdf69sas5jh9juir41z.pdf) · Gelephu Mindfulness City · checked 2026-10-10 · published 2025 2. [Income Tax Act 2025 (Commencement) Notification 2026, S 1/2026](https://gmc-image-storage.s3.ap-southeast-1.amazonaws.com/legislatioin/sub-items/vwlxf32fqiniteyc2o1m1mbg-1790855117739.pdf) · Gelephu Mindfulness City · checked 2026-10-10 · published 2026-10-01 3. [Legislation applicable in Gelephu Mindfulness City](https://gmc.bt/legislation) · Gelephu Mindfulness City · checked 2026-10-10 4. [Income Tax Act of Bhutan 2025](https://www.drc.gov.bt/wp-content/uploads/2025/09/Income-Tax-Act-of-Bhutan-2025.pdf) · Department of Revenue and Customs, Ministry of Finance, Bhutan · checked 2026-10-12 5. [Public notification on the new Income Tax Act: tax rates, filing obligation and presumptive taxation](https://www.drc.gov.bt/wp-content/uploads/2025/12/Public-Notification-on-new-Income-Tax-Act.docx-1.pdf) · Department of Revenue and Customs, Ministry of Finance, Bhutan · checked 2026-10-12 · published 2025-12-16 6. [Rules on the Income Tax Act of Bhutan 2025 (in force 1 January 2026), Annexure I withholding table](https://mof.gov.bt/wp-content/uploads/2026/03/Rules-on-the-Income-Tax-Act-of-Bhutan-2025-1.pdf) · Ministry of Finance · checked 2026-10-10 · published 2026-01-01